InsurTech Innovations: Saving You Time And Money
What is InsurTech? According to McKinsey, “‘InsurTechs’ are technology-led companies that enter the insurance sector, taking advantage of new technologies to provide coverage to a more digitally savvy customer base.”
InsurTech is a subsector of Fintech, from which inspiration was gleaned for the portmanteau of “insurance” and “technology.”
InsurTech companies such as simplesurance and Ladder stepped to the forefront of the InsurTech industry in 2016 and 2017 — and the InsurTech industry is predicted to hit its stride in 2018 as venture capital confidence in the industry increases. As of early 2018, $5.9 billion has been spent on funding InsurTech companies.
According to PWC, blockchain incorporation is at the forefront of many major insurers’ innovation initiatives: “…last year only 17% of insurance participants recognised blockchain as a very important innovation trend, half are now exploring the technology in-house or are in the process of participating in some blockchain initiatives.”
But What Other InsurTech Innovations Are Making Waves?
The Internet of Things (IoT) is being brought into InsurTech as well. In 2016, Accenture reported that 39% of insurers had launched or were piloting connected smart home initiatives. Data analyzed from smart homes allow accurate risk assessments — thereby enabling personalized insurance plans with appropriately adjusted premiums. Beam Technology, the smart toothbrush company, has also moved into the personalized insurance space as well by enabling users to utilize their oral hygiene stats to support their dental insurance plan.
CB Insights reports that on-demand insurance and scenario-based (or “episodic”) insurance are also expanding due to companies such as Trōv and Baidu. With Trōv, you can swipe to activate and deactivate coverage. Up-and-coming company Sure also provides on-demand insurance, providing micro-duration life-insurance coverage during air travel, as well as coverage options for your pets and smartphone.
With all the innovations occurring in the field of InsurTech, we should soon be experiencing a completely transformed insurance industry.
Faults With The Current Traditional Insurance Industry…
When it comes to insurance, overpaying and increases are currently the norm, with an average increase of 2% in cost per year. According to JD Power, only 29% of people shop and switch auto insurance carriers, which means that many individuals are missing out on the insurance plans that are best for them.
ValuePenguin calculated that the top ten auto insurance companies control 70% of the market. Premiums paid on insurance from the top five insurance companies amounted to $116,800,000,000 in 2016. But are people blindly choosing their insurance company and policy?
It’s easy to miss opportunities to save on insurance and make common mistakes such as under-insuring, over-insuring, or picking the wrong policy. The efficiency of InsurTech can remedy that — especially when combined with artificial intelligence.
Omnidya and Artificial Intelligence
Why should AI be incorporated into InsurTech? Because currently — aside from the money spent on non-ideal insurance deals — people spend countless hours searching for the best deal on insurance or looking for the cheapest flight.
There are a great number of individuals hesitant about incorporating AI, with concerns ranging from the fear that AI will affect the amount of jobs available for humans to the ever-present declaration of, “AI entities will take over and make humans their slaves.”
As the industry evolves and expands, however, more and more people are sounding off on AI. Bill Gates recently stated, “AI is just the latest in technologies that allow us to produce a lot more goods and services with less labor. And overwhelmingly, over the last several hundred years, that has been great for society.”
In late 2017, Gartner reported that AI is predicted to eliminate 1.8 million jobs currently held by humans by 2020…while also creating 2.3 million jobs in the process.
Omnidya uses artificial intelligence to create win-win scenarios between enterprises and consumers for deals on insurance, travel, wireless services, and more. We leverage AI so you can spend less time finding the insurance deal or travel option that gets you the most bang for your buck.
Omnidya Uses AI to Enhance Customer Engagement…
Our chatbot, Omnibot, is always there to answer any questions or address any concerns you might have. Questions about your insurance deal? Ask Omnibot. Questions about your upcoming trip? Omnibot can help. We take customer care seriously — and our intelligent chatbot will provide you with around-the-clock assistance to ensure you have the most positive and efficient experience possible with Omnidya.